Armed police on horseback patrol the beach near the Imperial Marhaba Hotel on June 28, 2015, in Sousse, Tunisia, two days after 38 people were killed in a terrorist attack at the hotel. Jeff J Mitchell /Getty Images
Armed police on horseback patrol the beach near the Imperial Marhaba Hotel on June 28, 2015, in Sousse, Tunisia, two days after 38 people were killed in a terrorist attack at the hotel. Jeff J Mitchell /Getty Images
Armed police on horseback patrol the beach near the Imperial Marhaba Hotel on June 28, 2015, in Sousse, Tunisia, two days after 38 people were killed in a terrorist attack at the hotel. Jeff J Mitchell /Getty Images
Armed police on horseback patrol the beach near the Imperial Marhaba Hotel on June 28, 2015, in Sousse, Tunisia, two days after 38 people were killed in a terrorist attack at the hotel. Jeff J Mitchel

Tunisia strengthens security after tourist massacre


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SOUSSE // Tunisia will deploy 1,000 armed officers to reinforce the country’s tourism police from Wednesday, arming them for the first time, the tourism ministry said on Sunday following the massacre of 38 tourists in the coastal resort town of Sousse.

Hundreds of troops and armed police were deployed around Tunisia’s seaside resorts on Sunday, as police on horseback and quad bikes were seen patrolling the beach at Port El Kantaoui where the attack took place on Friday.

In Tunis, the national security council met to discuss what measures should be taken after the attack, which saw at least 15 Britons killed and dealt a heavy blow to the country’s vital tourism industry.

Interior minister Mohamed Najern Gharsalli visited the massacre site at the Imperial Marhaba hotel on Sunday, amid reports that security forces took more than half an hour to get to the scene of the attack which was claimed by ISIL.

Six people remained in “serious condition” in hospital on Sunday two days after the attack, the hotel said.

Security forces were also moving to shut down more than 80 radical mosques, following reports that the gunman Saif Rezgui was indoctrinated by a radical preacher.

A number of protests against terrorism took place around Sousse, a centre of Tunisia’s tourism industry, on Saturday night as thousands of residents poured into the streets, waving flags and tooting car horns.

As they marched along the coastal highway, groups of foreign tourists cheered and clapped.

Tunisians and foreigners also held candlelit vigils that stretched into the early hours of Sunday as they remembered the dead.

Several hundred tourists were flown out on evacuation flights on Sunday, although exact numbers are unclear.

Meanwhile, the victims were recuperating in Sousse hospitals, still trying to come to terms with the horrific slaughter that unfolded on Friday when a gunman mowed down guests as they relaxed on the beach.

Briton Tony Callaghan, recovering from a bullet wound, held up the dented spectacle case he says may have saved his life.

Running for safety through the Marhaba hotel, he was shot at by the gunman, but the bullet deflected off the case inside a beach bag he was holding.

A dent showed where the bullet hit, the impact crushing the steel-framed spectacles inside.

“Except for that I might be dead,” said Mr Callaghan.

The bullet grazed his leg, now covered in a bandage, and he sat in his hospital bed still in the red beach shorts he was wearing during the attack.

Mr Callaghan, retired from Britain’s air force, yelled for crowds of frightened tourists to disperse into rooms instead of clustering together in a hotel corridor as the gunman advanced.

“I was shouting, ‘We’re a sitting target, you have to go in different directions, you can’t stay in a group’,” he said.

In a bed two floors above him at the same hospital, Mr Callaghan’s wife Christine was recovering from a bullet that passed through her thigh, as a red metal frame held her leg together.

“I’ve been doing a lot of crying, I’m just grateful to be here,” she said.

The Callaghans and other tourists praised the hotel staff for their bravery in risking their lives to save those of the guests.

Five Tunisians were reported to be among the dead, with guests saying that as they ran from the gunman at the start of the massacre, Tunisian staff were running the other way, heading to the beach to try and save the tourists.

The Callaghans said that despite their ordeal, they were so moved by the courage of the Marhaba staff that they may return to the hotel again, after having visited it for the past three years.

Tunisian officials are concerned that a much wider negative sentiment will see many more tourists stay away.

Tourism is one of the country’s main economic drivers, and if tourists stay away during the summer peak season, it will be disastrous for the industry.

The attack is also a challenge to the promise of the ruling party, Nidaa Tounes, which swept to power in elections late last year, to bring security to the country.

Four years after democracy was proclaimed following the overthrow of dictator Zine El Abidine Ben Ali, the economy remains shaky and terrorism is an ever-present threat.

Nidaa Tounes, with some members from the former Ben Ali regime, had been a constant critic of the former government led by the Islamist Ennahdha movement, who were accused of being weak on security.

Now the new government, led by prime minister Habib Essid, faces the same challenges.

The Marhaba massacre comes three months after the killing of 22 people, mostly tourists, at Tunis’s Bardo museum.

Officials know they must reassure both tourists and their own citizens with decisive action.

foreign.desk@thenational.ae

* Additional reporting from Agence France-Presse

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”